Thailand’s cabinet has approved a budget of 29.9 billion THB (810 million USD) to assist farmers with fertiliser costs, expected to increase rice production by 10% in this harvest season, reported local media.

Farmers harvest rice in a field in Chiang Mai, Thailand. (Photo: AFP/VNA)

Bangkok (VNA) – Thailand’s cabinet has approved a budget of 29.9 billion THB (810 million USD) to assist farmers with fertiliser costs, expected to increase rice production by 10% in this harvest season, reported local media.

Under the scheme, the government will subsidise fertiliser costs for farmers at a rate of 500 THB per rai (about 1,600 sq.m), up to a maximum of 20 rai per person, for the 2024-2025 crop season.

It is scheduled to run from July 15 to May 31 next year. Farmers can buy fertiliser from the stores registered with state agencies, at prices lower than market ones.

Purchases must be made using the Bank for Agriculture and Agricultural Cooperatives’ application. Farmers who want to participate in the scheme must register with the Agriculture and Cooperatives Ministry. An estimated 4.68 million farmers will benefit from this scheme.

Government spokesman Chai Wacharonkesa said that last year, the government spent 56 billion THB to provide financial assistance for farmers, thus reducing their expenses by 1,000 THB per person. However, most of this aid went to landowners while tenant farmers did not benefit.

This year, the approach changed to directly subsidise fertiliser costs for farmers, ensuring the benefits reach growers, he added.

Meanwhile, the cabinet approved a central budget of 4.7 billion THB for water management and storage as this year’s rainfall is forecast to be 10% higher than in 2023, which requires appropriate response plans. About 125,000 rai of land are expected to benefit from this policy, with water storage capacity to be raised by 115 million cub.m. to help 67,000 people.

Published Date: June 26, 2024